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Suppose the marginal propensity to consume (MPC) is 0.8. a) Compute the government purchases multiplier and the tax multiplier. B) If the government raises G by $500 billion, how much does GDP change by? C) If instead the government reduces taxes by $500 billion, how much does GDP change?
q1.the item to rice or paintings. which product did you expect to have a higher index of intra-industry trade and
Although GDP is a reasonably good measure of a nation's output, it does not necessarily include all transactions and production for that nation. Which of the following scenarios are either not accounted for or measured inaccurately by either the inco..
The simple interest formula is I = Prt (Interest = Principal * rate * time). This is one way that interest is calculated on a loan or investment. Create a loan scenario: Tell a story about the purpose of the loan, who was involved, and explain the te..
Suppose the nominal interest rate is i = 10%, the time cost of a round trip to the bank is $25 and annual expenditure is $72,000. Calculate the optimal number of trips to the bank using the Baumol-Tobin model. How much is withdrawn in each trip?
Which of the following best describes the aggregate demand and aggregate supply model?
Jetways Airline flies passengers between New York and Miami, making one round-trip daily using a leased Boeing 737 aircraft. Consider the number of passengers served daily as the output for the airline. Identify each of the following costs as either ..
q1. the total operating revenue of a public transportation authority is 100 million while its total operating cost is
Suppose every member of Congress genuinely believes that government expenditures are excessive and ought to be reduced by at least 10 percent. Why would this not be sufficient to assure a 10 percent reduction?
If hospitals begin to affiliate within regions, would you expect that “unnecessary duplication of facilities” would increase, decrease or stay the same? Why is that? As you think about your answer, consider why this duplication exists in the first pl..
Your friend makes half of your salary and pays 20% in income taxes. Elucidate rate most likely would be your income tax rate.
You are to write a paper, convincing the president of the company of your conclusion and explaining what the company's pricing strategy
A hot dog vendor faces a daily demand curve of Q=1800-4p, where P is the price of a hot dog and Q is the number of hot dogs purchased each day. If the vendor has been selling 300 hot dogs each day, how much revenue has he been collecting? What is the..
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